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Social Ad Revenue in India and Global

This deck provides an analysis of social advertising across various social media platforms like Facebook, LinkedIn and Twitter. You will also find key observations by digital minds from the industry.

This is intended to highlight the trend of cannibalization of traditional media spends by specialized social channels. Our brand experts also cite the reasons of adapting to this medium as the preferred choice over the mediums they are comfortable with.

3.
SOCIAL AD SPENDS & REVENUE BY NETWORK
Google still dominates
accounting for 1/3rd of all
online advertising with
majority revenue coming
from Adwords, Adsense &
YouTube
Google is said to receive
45% of its channel
subscription cost thus
adding to its online ad
revenue pie. FB had
phenomenal run though & in
digital main frame.
Source:
eMarketer,
Mashable

4.
TWITTER REVENUE & POTENTIAL
Twitter Advertising Revenue has increased by 124% Y-O-Y
91% of revenue comes from ads itself, registering an increase of 4%
Even after strategic acquisitions of companies like Bluefin Labs and Trendrr, twitter will
maintain healthy profit in 2014
Twitter ad revenue expected to reach $ 1 billion US dollars by end of 2014
In US alone Twitter ad revenue grew by 93% over previous year ($277 million for 1st
three quarters)
Source:
B2C
community
2014

5.
WHAT DO EXPERTS THINK?
Have you started using twitter for paid promotions? How is the future
for twitter? What are the innovations?
In India

6.
Sagnik Ghosh,
VP & Head
Marketing,
AXIS Bank
“We have used paid
promotions on Twitter
for online festivals. It
worked for us.
However, twitter needs
to go beyond the usual
tagging & DMs.
Innovations like g+
(circles) or LinkedIn
(groups) would work”
Bhupendra
Khanal,
Co-founder,
Simplify360
“We haven’t used it so far.
Paid promotions will do
well but it needs to be
made easier. It has to be
self serve & quick like FB
ads. I believe a marketplace
type of model much like
sponsored tweets would
work. They can aslo make
right hand column for ads &
more”
Vikas Tandon,
Managing Director,
Indigo ConsultingLeo Burnett
“We have not used it so far
but have considered it in a
few places. They need to
make it an impression cost
model and also have to
ensure that the user
experience is not
compromised.”

7.
FACEBOOK REVENUE POTENTIAL
Money raised from IPO is being channeled towards introducing new social ad revenue
with focus on developers labs
Mobile ad revenue has increased 3x times (from 5.35% in 2012 to 15.80% in 2013)
Major acquisition of Instagram showcases a good revenue potential
Source:
EMarketer
2013
B2C
community
2014

8.
WHAT DO EXPERTS THINK?
Have you started using Facebook for paid promotions? How much do
you spend on an average? Has it cannibalized your display
advertisement budget?
In India

9.
Madan Sanglikar,
Co-founder & MD,
AD2C
“Yes very much & specially in the mobile
domain its very much imperative to use
FB. The spends are now above 40% of
the total spends and it surely has
cannibalized display. Native advertising
opportunity packaged with the right
targeting & pricing will keep on hurting
the traditional display medium & that
effect will be even more stronger in the
mobility domain”
Aditya Save,
Head - Digital Mkting &
Media, Marico India Ltd
“We have used FB for paid promotions.
However, I would not call it
cannibalizing display ad spends, as the
two are used for completely different
objectives. FB ads are used also
exclusively for the audience within that
platform & for an engagement within
that platform. Display ads are used for a
wider gamut of objectives”

10.
LINKEDIN REVENUE POTENTIAL
LinkedIn has estimated first decline ever in ad revenue estimates
LinkedIn ad revenue is expected to be around between $415 M - $420 M, lower than
(forecasted) $421 in last 3 months of 2013
Total ad revenue estimated by LinkedIn is $1.5 billion
Source:
Reuters
2013,
B2C
Community
2014

11.
WHAT DO EXPERTS THINK?
Why is LinkedIn losing its sheen? How much do you spend on an
average? Does it work for lead generation? What is so special for
LinkedIn advertisement over other social channels?
In India

12.
Madan Sanglikar,
Co-founder & MD,
AD2C
“I don’t think LinkedIn is losing any sheen, its
just different from FB & Twitter. Linked is not as
mass as Twitter & FB & the frequency of usage
can never be the same. But LinkedIn cannot be
ignored for B2B marketing or high value B2C
services. So while it can’t be compared with FB
& Twitter in terms user base & frequency of
usage it gives you great depth for relevant
categories from fitment perspective. LinkedIn
need to offer better creative options & flexible
pricing and can be very regular in all paid
media campaigns”
Aditya Save,
Head - Digital Mkting &
Media, Marico India Ltd
“The choice of any media platform, is
directly related to the audience that it
attracts. Linkedin caters to a specific class of
professionals, making access & connections
easier. It has added a huge content piece, &
even that is catering to the audience need of
'wanting expert POV, quickly'. It would be
incorrect to compare it with other social
platforms like FB. The reasons to choose
either are completely different”

13.
DMTI KEY TAKE-AWAYS
The strategic acquisitions by Google, Facebook & Twitter is making ad revenue landscape more interesting and likeable
for marketers & advertisers
With consumers using social media beyond product and brand research, sales are increasingly being driven via socialmedia led offers or click through to a landing page
Mobile centric innovations are adding more to companies ad revenue pie
Increasing the ad revenue by balancing it with consumer experience and increase in user base is the key challenge for
Google, Facebook, Twitter & LinkedIn
Experts see future of LinkedIn shinning, provided there is a change in their way of doing media commerce. Promoted
Tweets are increasingly becoming the choice of marketers for quick reach

14.
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